𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

The UK’s manufacturing sector grew against last month but at a slower pace, according to new figures.

The S&P Global UK manufacturing PMI survey, watched closely by economists, showed a reading of 51.9 in July.

It nevertheless represented a slight slowdown from 52.5 in June and marked the lowest level for four months.

Any reading above 50 indicates that activity is growing while any score below means it is contracting.

It was also below the 52.5 reading predicted by economists.

A rise in new business and export orders helped maintain growing demand and strong production over the month.

Rob Dobson, director at S&P Global Market Intelligence said: “July brought further encouragement for the UK manufacturing sector, as rates of growth in output, new orders and new export business all accelerated.

“The increase in production was the fastest in almost two years, as improving market conditions led to better hit rates in securing new contracts.”

The survey data showed that medium and large firms saw particularly strong production, offset slightly by weakness among smaller firms.

New orders grew for an eighth consecutive month, with order growth from North America, the EU, mainland China, India and South Korea helping to boost exports.

However, business optimism was still “relatively subdued” as the volatile macro-economic backdrop continued to weigh on firms.

The overall slowdown in growth for the month was partly linked to a reduction in purchasing stock and slower jobs growth.

Staffing levels increased for the fourth month in a row but growth slowed to “near stagnation”.

Matt Swannell, chief economic adviser to the Item Club, said: “The loss in momentum came despite upturns in production and orders, with the survey reporting that global trade tensions, tax rises, and regulatory changes were some of the factors dragging down business sentiment.

“However, we think the breakdown of the US-Iran ceasefire early in the month and the uncertainty surrounding the future of the conflict has been a key drag on manufacturers’ optimism.”